| Last Action | 03/31/26: posted for passage for concurrence in Senate Committee Substitute (1), Floor Amendment (1) and Committee Amendment (1-title) |
|---|---|
| Title | AN ACT relating to geologic sequestration of carbon dioxide. |
| Bill Documents |
Current
Introduced |
| Bill Request Number | 2168 |
| Sponsors | J. Gooch Jr., J. Payne, W. Williams |
| Summary of Original Version | Create new sections of KRS Chapter 353 to establish the purposes of the Act; define terms; require and specify the types of permits before constructing or operating a carbon dioxide facility; exempt enhanced oil or gas recovery under KRS 353.592; require any oil, natural gas or coalbed methane well converted to a carbon dioxide sequestration well to be governed by this Act; set forth the requirements and process to obtain a Class VI underground injection control permit; require permit fees to be put in the carbon dioxide sequestration facility administrative fund; set forth a process for commercially valuable minerals; designate the consent of owners of pore space for a administratively complete application; specify when the Energy and Environment Cabinet can begin technical review of the application; require financial responsibility sufficient to cover specific activities and cabinet review of financial responsibility annually; provide that the cabinet's determination is considered final; allow for the adjustment of financial responsibility based on adjustments in cost estimates; list the type of financial instruments which can be used as qualifying financial responsibility instruments; authorize the cabinet to promulgate administrative regulations for financial responsibility; identify reasons why the cabinet would deny an application for a permit; authorize the cabinet to restore applicant eligibility for permit under specific grounds and circumstances; require cabinet approval for a transfer of a permit and allow obligations and rights to pass to the new transferee; require periodic review of permits; prescribe the notice and comment requirements for a Class VI permit; delineate the cabinet's actions for applications that are complete and incomplete; prohibit the approval or transfer of a permit to an operator for conditions specified and allow eligibility after an applicant, operator, or control person takes certain remedial actions; establish requirements to maintain the integrity of carbon sequestration wells and notification of affected parties when activities occur on the well site; provide mechanism of redress for parties that are not in agreement over activities on the well site; specify the requirements for plugging and abandoning a Class VI well or monitoring well; authorize the secretary of the Energy and Environment Cabinet to enter into cooperative agreements; specify the requirements for a completion certificate issued by the Energy and Environment Cabinet after demonstrating compliance for 50 years or another time frame designated by the cabinet along with notice and public hearing; require ownership transferred to the Commonwealth and that both pore and surface owners are held harmless from liability; establish a carbon dioxide sequestration facility administrative fund and specify the moneys to be placed into the fund and the purposes and uses of the fund; establish an application fee to be paid to the carbon dioxide sequestration facility administrative fund and authorize the cabinet to promulgate administrative regulations for a fee schedule; establish a carbon dioxide sequestration facility trust fund and specify the purposes and use of moneys in the fund; require sequestration operators to pay a fee on each ton of carbon dioxide sequestered and have the fees remitted to the carbon dioxide sequestration facility trust fund; require the cabinet to prepare an annual report on the Class VI underground injection control permit and the carbon dioxide sequestration facility trust fund; state that the report is due December 31 of each year beginning with the receipt of the first application for an underground injection control permit; require the Energy and Environment Cabinet to certify the amount of carbon dioxide sequestered by each permittee and allow amounts sequestered to be used for a carbon dioxide credits, allowances, trading, emissions allocations, or offsets; prohibit the altering of legal rights or relationships of several mineral estates and pore space owners in common law; specify methods for nonconsenting owners; allow for the cabinet to make a determination on missing or nonconsenting pore space owners for a sequestration facility and notice for a pooling order; require the applicant to pay the cost of administrative hearing with a pooling order; establish notice for a pooling order and the compensation of owners; establish requirements for seismic survey of lands; require operator to deposit funds for unknown or missing pore space owners and allow funds to be moved to the carbon dioxide sequestration facility trust fund after 7 years; create a severability clause; establish violations and penalties; require notice and service for violations and establish courts with jurisdiction and a requirement for a stay of notice and administrative hearing; authorize the cabinet to promulgate administrative regulations to develop regulatory program for the administration of the underground injection control program; repeal KRS 353.800, 353.802, 353.804, 353.806, 353.808, 353.810, and 353.812, relating to geologic storage of carbon dioxide. |
| Index Headings of Original Version |
Coal - Carbon sequestration, Class VI permit, regulatory and permitting Energy - Carbon sequestration, Class VI permit, regulatory and permitting Environment And Conservation - Carbon sequestration, Class VI permit, regulatory and permitting Fuel - Carbon sequestration, Class VI permit, regulatory and permitting Minerals And Mining - Carbon sequestration, Class VI permit, regulatory and permitting Oil And Natural Gas - Carbon sequestration, Class VI permit, regulatory and permitting Pollution - Carbon sequestration, Class VI permit, regulatory and permitting Reports Mandated - Energy and Enviroment Cabinet, carbon sequestration, Class VI permit, regulatory and permitting |
| Jump to Proposed Amendments |
House Committee Amendment 1 Senate Committee Substitute 1 Senate Committee Amendment 1 Senate Floor Amendment 1 |
| Votes | Vote History |
| 02/19/26 |
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| 02/24/26 |
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| 03/05/26 |
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| 03/06/26 |
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| 03/09/26 |
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| 03/10/26 |
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| 03/19/26 |
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| 03/25/26 |
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| 03/26/26 |
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| 03/27/26 |
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| 03/31/26 |
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| Amendment | House Committee Amendment 1 |
|---|---|
| Sponsor | J. Gooch Jr. |
| Summary | Clarify that, if a claim is made against the pore space or surface owner, then the Commonwealth has the responsibility to defend and indemnify the pore space and surface owners. |
| Index Headings |
Civil Procedure - Claims, pore space and surface owners, Commonwealth indemnifies Claims - Claims, pore space and surface owners, Commonwealth indemnifies Environment And Conservation - Claims, pore space and surface owners, Commonwealth indemnifies Pollution - Claims, pore space and surface owners, Commonwealth indemnifies |
| Amendment | Senate Committee Substitute 1 |
|---|---|
| Summary | Retain original provisions; amend KRS 278.700 to change the definition of "residential neighborhood" to "residential structure"; amend KRS 278.704 to provide for minimum setback distances for proposed merchant electric structures used in connection with the generation, transmission, or storage of electricity; prohibit the construction of a merchant electric wind turbine with a maximum height that exceeds 350 feet, subject to local primacy; provide that the minimum merchant electric decommissioning bond amount is not subject to local primacy; amend KRS 278.706 to provide that changes to minimum decommissioning plan requirements can only be made by agreement of the current landowner at the time of decommissioning; require that the minimum decommissioning bond amount is the greater of the estimated cost of decommissioning or the bond amount set by local government; require that as part of an application for a construction certificate for a wind merchant electric generating facility, the applicant certify that the wind facility will not be artificially lit and that shadowing and flicker impacts will be mitigated; provide that the entity carrying out the decommissioning plan be entitled to the proceeds from any salvage material recovered; amend KRS 278.710 to provide that as part of the criteria for the approval of a wind merchant electric generating facility's construction certificate, the board considers whether the applicant will comply with its required certifications regarding lighting, shadowing, and flicker impacts; require that discarded or replaced wind turbine components of a merchant electric generating facility be removed within 90 days of completion of the replacement; amend KRS 278.714 and 278.718 to conform. |
| Index Headings |
Energy - Merchant electric generating facilities, decommissioning, salvage, bonding, requirements Energy - Merchant electric generating facilities, wind energy, height, setbacks, requirements Environment And Conservation - Merchant electric generating facilities, decommissioning, salvage, bonding, requirements Land Use - Merchant electric generating facilities, setback requirements Property - Merchant electric generating facilities, setback requirements Safety - Merchant electric generating facilities, wind energy facilities, maximum height, requirements |
| Amendment | Senate Committee Amendment 1 |
|---|---|
| Sponsor | R. Mills |
| Summary | Make title amendment. |
| Index Headings | Title Amendments - HB 677/GA |
| Amendment | Senate Floor Amendment 1 |
|---|---|
| Sponsor | J. Howell |
| Summary | Return the definition of "residential neighborhood" to existing language; delete merchant electric generating facility setback requirements for structures or facilities used in connection with the transmission of electricity. |
| Index Headings |
Energy - Merchant electric generating facilities, transmission structures, setback requirements, deletion Land Use - Merchant electric generating facilities, residential neighborhoods, setback requirements Property - Merchant electric generating facilities, transmission structures, setback requirements, deletion |
Last updated: 4/1/2026 1:27 AM (EDT)